Labor and Investment Demand at the Firm Level: a Comparison of French, German and U.S. Manufacturing, 1970-79

56 Pages Posted: 8 Jun 2004 Last revised: 7 Jun 2015

See all articles by Jacques Mairesse

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT); National Bureau of Economic Research (NBER)

Brigitte Dormont

Université Paris Dauphine

Date Written: February 1985

Abstract

We investigate how labor and investment demand at the firm level (gross as well as net and replacement investment separately) differs in French, German and U.S. manufacturing, and has changed since the 1974-75 crisis. We use three consistent panel data samples of large firms for1970-79, and rely on simple models of the accelerator-profits type. We find that the accelerator effects and the profits effects did not vary much between 1970-73 and 1976-79, and were quite comparable in the three countries, the former being of a more permanent nature and the latter more transitory.To a large extent these effects account for the important changes and differences in labor and investment demand between the two subperiods and across the three countries.

Suggested Citation

Mairesse, Jacques and Dormont, Brigitte, Labor and Investment Demand at the Firm Level: a Comparison of French, German and U.S. Manufacturing, 1970-79 (February 1985). NBER Working Paper No. w1554. Available at SSRN: https://ssrn.com/abstract=336266

Jacques Mairesse (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT)

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Netherlands

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Brigitte Dormont

Université Paris Dauphine ( email )

Place du Marechal de Lattre de Tassigny
75016 Paris, 75775
France

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